Uranium Honeymoon Fails Financial Test

Submitted by FOEAdmin on Thu, 07/06/2001 - 23:07

June 7, 2001

Economic uncertainty over the controversial Honeymoon uranium project in South Australia is growing ahead of today¹sThursdays Annual General Meeting of mining company Southern Cross Resources in Ontario Canada. The company attempting to develop the controversial acid leach uranium mine near Broken Hill has been beset by delays and has failed to secure a joint venture. Southern Cross are seeking Australian Government approval before the next federal election as present Federal Labor policy opposes the project.

Mr. Robert Schuitema, Managing Director of global mining and metals for US based finance house JP Morgan Chase has outlined key requirements for successful financing in the May edition of the mining industry journal , the Minerex Report. The Honeymoon project fails each part of the checklist.

A Quality Sponsor: Southern Cross has failed to secure joint venture

Reserves: Honeymoon ore reserve estimates have dropped 15%

Project Delivery: Government approvals have stalled pending further field trials

"With both a depressed market and an uncertain political climate, Southern Cross have serious questions to answer at their annual general meeting. Far from signaling a uranium honeymoon, the project remains a marginal gamble" said Bruce Thompson for Friends of the Earth.